By Raymond Wong  Tony Dong King & Wood Mallesons

黄志豪dong_tonyTransfer pricing is a term used to define the price charged between associated enterprises for the transfer of goods, services and intangible property. Increasing cross-border activities have made transfer pricing a real issue as enterprises seek to use transfer pricing as a tool for tax avoidance. Consequently, HK has increased the awareness of transfer pricing and placed specific emphasis towards the development of rules and regulations in order to combat multinational tax avoidance and evasion through transfer pricing. Understanding HK’s position on transfer pricing becomes increasingly important because, as rules and regulations develop, this also inadvertently influences the relationship and supply chain of an enterprise and its intra-group transactions.

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